Execution · Quotes
What does "installed cost" mean in a renovation, and how do you compare quotes like for like?
Installed cost is the total cost of getting something supplied and fitted in place: the materials plus the labour to install them, rather than the product price alone. When you compare renovation quotes, check that each one is pricing the same scope on the same basis (supply and install, supply only or labour only) and that allowances, exclusions and margin are visible. Two quotes only compare like for like when they price the same job, line by line.
Key takeaways
- Installed cost = materials + labour to fit them. A product's shelf price is only part of it.
- Know whether each quote is supply and install, supply only or labour only before you compare totals.
- Allowances (prime cost items and provisional sums) can make a quote look cheaper than the finished job will be.
- A builder's quote normally includes overheads and margin. That's legitimate, but it means a quote won't match a materials-plus-labour estimate.
- A missing line isn't a saving. Line every quote up against one written scope.
What does installed cost mean?
Installed cost is what it takes to have an item or a piece of work finished and in place: the materials, any consumables and fixings, and the labour to fit them. It answers "what will this cost done?", not "what does the product cost at the shop?".
For a renovation budget this matters because labour and the work around a product are often what moves the number. A vanity is a product. Fitting it can involve plumbing connections, waterproofing details, tiling around it, silicone and making good. An installed-cost line rolls that together so you're budgeting for a finished result.
What installed cost doesn't necessarily include is a builder's overheads and margin, permits, or site costs like rubbish removal. Always check what a number does and doesn't cover.
What's the difference between supply only, labour only and supply and install?
They describe who provides the materials and who does the work. Mixing them up is the fastest way to compare a cheap-looking quote with a complete one.
| Quote basis | What you're paying for | What to watch |
|---|---|---|
| Supply and install | Materials and labour to fit them | Check which products, what standard, and what's excluded (making good, removal of old items, disposal) |
| Supply only | The product, sometimes with delivery | You still need someone to fit it, plus fixings, consumables and connection |
| Labour only | The trade's time and skill | You supply materials on time and to spec; delays and wrong items are your problem |
| Allowance (prime cost item or provisional sum) | A placeholder amount for an item or work not yet fixed | The final cost can be higher or lower than the allowance |
Why are renovation quotes for the same job so different?
Usually because they aren't pricing the same job. The gap is more often in what's included than in the rate for the same work.
Common reasons:
- Different scope assumptions. One quote keeps plumbing positions, another moves them. One includes waterproofing, one assumes it's sound.
- Exclusions. Rubbish removal, demolition, making good, electrical upgrades, permits and final cleaning may be listed as excluded, or simply not mentioned.
- Allowances instead of prices. A low allowance for tiles or tapware keeps the total down until you choose the product you actually want.
- Different product standards. "Benchtop" can mean very different materials.
- Overheads and margin. A builder managing several trades carries supervision, insurance and business costs, which a single trade quoting directly may not.
In Victoria, Consumer Affairs Victoria makes the same point: make sure you know exactly what quotes cover, because the cheapest may not include some items or may give a base rate that doesn't cover the materials and finishes you want (CAV: getting quotes).
How do you compare renovation quotes like for like?
Start with one written scope, send it to everyone, then line the quotes up against it item by item. Compare totals last, not first.
In Victoria, Consumer Affairs Victoria recommends comparing at least three written quotes for the same plans and specifications (CAV: getting quotes). A practical process:
- Write the scope room by room and send the identical version to every trade or builder (see our guide to writing a renovation scope of works room by room).
- Ask for itemised quotes that follow your scope's rooms and line items.
- Build a comparison sheet. One row per scope line, one column per quote.
- Mark gaps. Where a quote doesn't price a line, mark it as missing, not as a saving.
- Pull out allowances. List every prime cost item and provisional sum, and check whether each allowance is realistic for what you plan to choose.
- Read the exclusions and assumptions. Add the cost of anything excluded that you'll still need.
- Then compare totals, alongside licence or registration, insurance, timeframe and how clearly each trader communicates.
Quote comparison checklist
- Same scope version sent to every quoter
- Quote basis clear: supply and install, supply only or labour only
- Every scope line priced, or marked as missing
- Prime cost items and provisional sums listed, with amounts
- Exclusions and assumptions read and costed
- Demolition, rubbish removal and making good covered
- Permits, inspections and fees covered or excluded in writing
- Licence or registration details checked for licensed work
- Insurance details provided (in Victoria, Consumer Affairs Victoria suggests asking for a certificate of currency for public liability insurance)
- How variations will be priced and approved, in writing
What are prime cost items and provisional sums?
They're allowances for things not fully priced when the contract is signed. In Victoria, Consumer Affairs Victoria describes a prime cost item as covering a fitting not yet selected or not yet priced, and a provisional sum as an estimate for work the builder can't price definitely yet (CAV building definitions).
Both move the final cost up or down. In Victoria, Consumer Affairs Victoria advises avoiding them where possible because they can blow your budget and cause delays (CAV: managing project costs). The fix is the same as for most quote problems: make the selection before you ask for prices.
Can an app help you compare renovation quotes?
It can, if it gives you a baseline to compare against. Zorvo Flip turns your room-by-room scope into an installed-cost budget (materials plus labour, without a builder's margin added), then lets you line trade quotes up against that walkthrough estimate. Where a quote doesn't include a line, Flip shows a dash, so a missing item is obvious rather than looking like a cheaper price. Because Flip has no margin built in, expect builder quotes to sit above it; the useful question is what's driving the difference. Try Flip on a real project for 3 months, then A$19/month. Quote comparison is included in the trial and in the A$19/month plan.
Frequently asked questions
What does installed cost mean?
Installed cost is the cost of materials plus the labour to fit them, so the item or work is finished and in place. It is different from a supply-only price, which covers the product alone.
What is the difference between supply only and supply and install?
A supply-only price covers the product, sometimes with delivery. A supply-and-install price also covers the labour to fit it. Compare quotes on the same basis or the totals will mislead you.
Why is one renovation quote so much cheaper than another?
Usually because it prices a different job: fewer items, more exclusions, lower allowances or a lower product standard. Line every quote up against the same written scope before deciding it is cheaper.
How many quotes should I get for a renovation?
In Victoria, Consumer Affairs Victoria recommends comparing at least three written quotes for the same plans and specifications. Wherever you are, the key is that every quote prices the same scope.
What is a prime cost item in a renovation quote?
In Victoria, Consumer Affairs Victoria describes a prime cost item as an allowance for a fitting, such as tapware or an appliance, that has not been selected or priced when the contract is signed. The final cost can be higher or lower than the allowance.
Does a builder's quote include margin?
A builder's quote normally includes overheads and a margin for managing the job, which is a legitimate cost. That is one reason a builder's quote will not match a materials-plus-labour estimate of the same scope.
Sources and further reading
- Consumer Affairs Victoria: getting quotes: comparing quotes and what they cover
- Consumer Affairs Victoria: building definitions: prime cost items and provisional sums
- Consumer Affairs Victoria: managing project costs: controlling allowances and variations
This article is general information only, not financial or building advice. Check requirements for your property and state with a licensed or registered building professional before you sign a contract.